Auckland Airport remains key economic generator for New Zealand

Touch downs at Auckland Airport are driving up New Zealand’s economic fortunes with new aviation infrastructure set to bring tens of billions of dollars more benefit, according to an economic analysis by consultants EY.

The airport’s chief customer officer, Scott Tasker, said the investment underway at Auckland Airport will be a key enabler of future growth right across New Zealand.

“Right now, every international flight is bringing in NZ$1.4 million worth of value to New Zealand. Annually, we’re talking about NZ$26.9 billion in international tourism value – now back to being our second biggest export earner – but also NZ$26.6 billion in air cargo value.

“It’s not just about international travel. Around 25,000 jobs are supported across the airport precinct by our operations, which in turn generates $1.4 billion of economic impact – that benefit is felt right across the country.”

Exports sourced across the length of New Zealand go out via Auckland Airport directly to more than 190 countries and territories worldwide, including the key markets of Australia, China, USA, Japan, the United Kingdom and European Union.

Looking to the future, EY project that Auckland Airport’s effect on the New Zealand economy is expected to increase from NZ$35.1 billion today to NZ$54.9 billion by 2032, also supporting NZ$41.1 billion in annual freight movements.

Aviation cargo hub

“When people think of aviation, a huge, industrial trade port won’t be the first thing that comes to mind, but Auckland Airport is ranked third behind Port of Auckland and Port of Tauranga in terms of the value of trade carried. And there’s a genuine multiplier effect on regional and national economies from the connectivity we provide every day through Auckland Airport,” added Tasker.

“We’ve tracked the economic impact of our operations, which show the international and domestic connections have a meaningful effect on the country’s fortunes, an impact that will grow as we work to increase capacity over the coming five years.

“We’re a long way from many of our key markets, but the fast, efficient, reliable connectivity provided by aviation, including the network of regional airports, brings those markets much closer for businesses big and small, right out into New Zealand’s heartland.

“That growth is unlocked by the investment we’re making today in capacity for the decades to come. We only need to look to last summer when our connectivity through to North America was at an all-time high. That increase in flights and routes generated more than 20% higher visitation from North Americans than pre-COVID, who spent $1.2 billion across the five-month summer flying season.”

Additional connectivity to North America also created 9% more cargo capacity resulting in a 26% increase in exports, with the value of those exports up by nearly 80%.

“A daily widebody flying between Auckland and North America will enable more than NZ$150 million of international visitor spend and $500 million of bilateral air cargo trade across the course of a year,” revealed Tasker.

“We’re proud of the role aviation plays in supporting the ambitions of Kiwi businesses, whether they are making their first steps into exporting or seeking to grow beyond established markets, and the wider economic success of the country.

“You can feel that buzz and energy around the clock at Auckland Airport, but it is also embedded in the decisions we are making as an organisation to build capacity for decades to come. Creating trade opportunities and boosting the economic fortunes of all New Zealanders is front of mind as we prepare our airport for the future.”

Other findings of the EY report include:

Investment in domestic travel capacity will positively impact international travel operations, leading to a projected NZ$43.9 billion in economic output from international travellers and NZ $9.5 billion from domestic travellers generated per annum by 2032.

Currently around 25,000 people are employed full-time in the Auckland precinct in 250+ businesses generating NZ$1.4 billion in economic output, and 100,700 jobs supported in the wider Auckland and New Zealand economy through trade and tourism.

Around NZ$6.8 billion in economic output is generated by domestic travel and tourism annually and $3.5 billion is generated by international tourism to New Zealand’s regions, distributed (top 5) Christchurch (26%), Wellington (22%), Queenstown (12%), Dunedin (6%), Napier (6%).

Each international landing supports NZ$1.4 million in economic value.

Foreign nationals comprise 53% of international travel movements through Auckland Airport, with 47% outbound New Zealand tourist, family and business travellers.